summit 05 presentations 06d gerwing
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TRANSCRIPT
Sensible Solar Energywww.power-spar.com
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1. TEAM Support
2. Status Update
3. Corporate Vision
4. Market Pain
5. Solution
6. Market Opportunity
7. The Market
8. The Sales Funnel
9. Technology Plan & Platform
10. Product Plan
11. Competition
12. Customer’s Value Proposition
13. Operations Plan
14. The Team
Agenda
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TEAM (Technology Early Action Measures) Support
… what it means to Menova
• Project Enabling– Financially cross the valley between high cost low
volume production to low cost product
• Managed technically by NRCan• Testing• Performance Analysis• Due Diligence
• Networking• Demonstration Support
• Schools, CCHT, Roger’s House, Residences
Getting Started
From our Early Adopters and
Menova…Thank you TEAM
Sensible Solar Energywww.power-spar.com
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Channel Partner News• VCI Controls – School Board and Government
Building Access - Developed Bilingual DDC work for all ESCO’s, Quoted 2 Schools $1.8M
• Direct Energy – Purchased a system for Roger’s House (CHEO) in Ottawa working with their business development manager weekly, Quoted 8 Tim Horton’s Stores, York University, Ottawa U and St. Lawrence College.
• Select Power – Guelph Hydro Signed as a Distributor for the Power-Spar
Agents• Bruce Dorn-Veevers selling lighting solutions to
rural Ont. Schools signed up as a Rep., delivers upper Ottawa Valley School Boards and high end building market in Eastern Ontario
Sales Funnel Development – July ’05
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Item Date Status
Product Launch Mar. 27, 04 Done
First Sale Signed April 24, 04 Done
Commission 1st Assembly Line Sept 05 Ramping up Volume
Residential Lease Program Oct, 04 Done 6.25% 10 Yr. Term
Industrial and Com. Financing On-Going MOU on Metered Energy
First Distributor Sept. 04 Done – Select Power
Capital Injection Mar 2005 On-going
Multi-Sun Product Launch Q2 ’06 Designed
$1.6M TEAM Grant Approved Feb ’05 Signed
$700k Sales Commercial & Residential
April ‘05 Installs Partially Complete
$800k Sale to Rural ON School June ‘05 Dec 05 Commissioning
Licensed Assembly Operations Late 2005 Early Negotiations
Status Update
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Menova Energy is focused on providing sustainable renewable energy solutions
for valued customers
Corporate Vision
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Rising costs... Service interruptions... Corporate environmental policies...Real Blackout Costs… Green Government Environmental Legislation
Market Pain
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– generates heat at a fraction of retail prices today – will generate electricity at a fraction of retail prices in year 2
– freezes heat and power rates for 20 years – provides emergency power during blackouts– discharges stored green energy to the grid precisely when
needed to maximize ROI
The Solution
Sensible Solar Energywww.power-spar.com
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• MARKET is heating up
• PRODUCT mix is in demand
• TEAM is experienced and focused
WHY Menova Energy Now?
Sensible Solar Energywww.power-spar.com
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1. Energy costs are rising every year• 11% - electricity – Peak Pricing & Stored Thermal Energy• 25% - natural gas• 50% - oil
2. Reliability of the electrical distribution, generation and supply is questionable
3. Demand for green power is real:• Many North American utilities, like OPG require up to 2/3 of their
capacity replaced by 2020• LDC’s in Ontario now have conservation incentives and real consumer
programs• Ontario is calling for 1.35 GW of green power by 2007… 300 MW RFQ
hit the street last Friday!
4. Government incentives for green energy are crystallizing
The Market Opportunity
As a result… customers are nervous about supply and want to hedge cost increases so…a market demand for cost effective and reliable distributed energy generation is growing
Sensible Solar Energywww.power-spar.com
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• MARKET DRIVERS…– Continuing, permanent shift to natural & greener
products– Strong MARKET PULL as both consumers and
manufacturers are legislated green– Competitive desire by manufacturers and service
providers to incorporate sustainable technology ingredients into product & service offerings
The Market Opportunity … cont.
Sensible Solar Energywww.power-spar.com
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THE MARKET IS…– Every building that the sun shines on– Becoming aware of energy & environmental issues– Seeking cost effective renewable energy solutions
Commercial
Space Heating53%
Non-Heating Electrical
37%
Water Heating10%
Market
Building Energy Use
Sensible Solar Energywww.power-spar.com
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North American Solar Thermal & Electric Market Potential *
* 1. USA market five times Canadian (northern application)
2. Not applicable to 65% of buildings due to a lack of space, no solar sight lines etc
3. Assumes Power-Spar can displace 50% of electrical and building heating
4. Assume 1% adoption of above
Total North American Solar Thermal Electric Market = $9.7 B *
Power-Spar 2006 Target = $15 M
Top-Down Market Size Based on Energy Use
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THE PRODUCTS ARE– Technically superior– Patent applied for technology– A complete range – Energy Generation, management, and
end use appliances– Regional economic development =>remote assembly plants– Addressing four key market drivers
• Less $ than existing source
• Fear of price increases for existing energy source
• Fear of shortage of incumbent energy supply
• Environmental $ incentives
– Smart, validated, monitored “in-your-face” low cost energy
WHY this Product Mix?
Sensible Solar Energywww.power-spar.com
14Im
ple
men
tati
on
10
fe
et
Building Integrated Heat & Power
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15Im
ple
men
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Hydro Easement
Power Plant
Sensible Solar Energywww.power-spar.com
16Im
ple
men
tati
on
Parking Lot
Power Plant
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6 feet
Side View of Power-Spar
For Reference
Only
TECHNOLOGY PLATFORM
Sensible Solar Energywww.power-spar.com
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INCOMINGSOLAR
ENERGY
INCOMINGSOLAR
ENERGY
Solar energy is reflected and concentrated onto two absorbers which in turn heats the glycol fluid.
High efficiency1-SUN PV CELLS
Patent Pending
Absorbers (2 per spar)
TECHNOLOGY PLATFORM: How it works
Sensible Solar Energywww.power-spar.com
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Thermal Insulation
Integrated Thermal Absorber & Cooling / Heating Pipe
OPTIONAL 20% Efficient Multi-Sun PV Cells (3 watts cells yield 9 watts of power)
Close up of the Absorber – illustrating thermal & solar power components
Patented Optical-Thermal Diode Reflectors
TECHNOLOGY PLATFORM: How it works
Sensible Solar Energywww.power-spar.com
20FULL SYSTEM DIAGRAM
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21Spar-Net: Power-Spar Web Enabled Control & Validation
Jan 23, 2005 -17 Deg C
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22Power-Spar is Performing ~ 20% better than planned
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23Competitive Renewable Products
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20 year pricing is projected at current five year energy Inflation rate of rate of 10%
Competitive Renewable Products
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• Co-generates Renewable Heat, Air Conditioning, Electricity, Light
• Patent fence strategy• Scaleable, modular, upgradeable solution• First mover “integrated solution” advantage• Local Assembly will build brand loyalty• Smart validated green energy• Maximize existing channel partner access to
markets
Sustainable Competitive Advantages
Sensible Solar Energywww.power-spar.com
26Customer’s Value Proposition: Return on Investment
Year from Purchase
CA
SH
FL
OW
Thermal heat & hot water only, no pool heating or solar cells deployed
Cash flow for an n-Panel Power-Spar system
Sensible Solar Energywww.power-spar.com
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• Contracted Manufacturing• Licensed Assembly and Installation
– Partners in Support of Direct Sales Team
• Menova Energy Corporate Staff focus on– Purchasing, Logistics, Customs, Spar-Net
Data Centre
• Territory Office focus on– Installation logistics coordination and training
Operations Plan
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THE TEAM IS…– Focused on recruiting leaders experienced at
growing a start up business in this industry– Using proven sales agents and channel partners– Supported by strong Board of Advisors– Driven by an innovative product development
team – Completed with a world class manufacturing
partner
Team
Sensible Solar Energywww.power-spar.com
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Dave Gerwing, P.Eng. President & CEO
24 years experience, Engineering, Management, Marketing, Innovation, Productization. Grown a profitable service firm to 18 employees in 8 years.
Rick Norland, P.Eng., MBA CFO 21 years experience, founding, financing, business management, financial consulting to startups and running companies. Successful in negotiating financing deals up to $350M.
Steve Tennant, Installations Manager
26 years experience, Operations, Field Installations
Menova Engineering, Contract Support Team
R&D, Product Development, Sales Support, Engineered Solutions
Management Team
Sensible Solar Energywww.power-spar.com
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PRODUCT DEVELOPMENT
Strategic Relationships
CustomerRequirements
CommercialChannelPartners
Product E
ngineering, D
esign &
Manufacturing Support
Man
ufa
ctu
rin
g &
Key
C
om
po
nen
t S
up
ply
Diversified Energy
Channel Partners
Customer Financing